- Ripple price declined sharply and tested the main $0.4000 support area against the US dollar.
- The price is currently moving higher and it might continue to rise towards the $0.4800 level.
- There is a major bullish trend line forming with support near $0.4400 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
- The price remains well supported on dips and it could continue to rise above the $0.4600 level.
Ripple price is showing positive signs above $0.4200 against the US Dollar. XRP is likely to continue higher and it could even break the key $0.5000 resistance area.
Ripple Price Analysis
This past week, there was a key downside correction in bitcoin, Ethereum, bitcoin cash, ADA and ripple against the US Dollar. The XRP/USD pair declined heavily from the $0.4755 swing high. There was a break below the $0.4500 support level. The price even declined below the $0.4400 support level and the 50% Fib retracement level of the upward move from the $0.3617 swing low to $0.4755 high.
The decline was such that the pair even spiked below the $0.4200 level and the 55 simple moving average (4-hours). The price tested the 61.8% Fib retracement level of the upward move from the $0.3617 swing low to $0.4755 high. More importantly, it tested the $0.4000 support area and recently bounced back above $0.4200. There was a slow and steady rise above the $0.4350 level and the 55 SMA. Besides, there is a major bullish trend line forming with support near $0.4400 on the 4-hours chart of the XRP/USD pair.
If there is a downside correction, the price might find bids near the $0.4400 support. A clear break below the trend line support could start a major decline towards the $0.4200 support area. Any further declines could push the price towards the $0.4000 support. On the upside, the price seems to be struggling near the $0.4600 level. If the bulls gain pace above the $0.4600 level, the price could accelerate higher. On the upside, the next key resistance is near the $0.4800 level.
Looking at the chart, ripple price is currently trading with a positive bias above the $0.4400 support. There are chances of more gains once there is a clear break above the $0.4600 level. More importantly, if the bulls remain in action, the price could test the $0.5000 barrier in the near term.
Technical indicators
4 hours MACD – The MACD for XRP/USD is slowly gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently above the 50 level and it could continue to rise.
Key Support Levels – $0.4400, $0.4350 and $0.4200.
Key Resistance Levels – $0.4600 and $0.4800.
